ACI 3I0-008 Online Practice Questions and Exam Preparation

ACI 3I0-008 Online Questions & Answers

• Question 151:

  Click on the Detail Button to view the Formula Sheet. A broker offers a dealer an incentive in the form of a reduction to the agreed schedule of brokerage between the firms.

  A. This is a normal volume discount.
  B. The offer requires approval in writing by both senior managements.
  C. The offer requires agreement in writing between the broker and the dealer.
  D. This is illegal.
  B. The offer requires approval in writing by both senior managements.

• Question 152:

  Click on the Detail Button to view the Formula Sheet. A forward-forward loan creates an exposure to the risk of:

  A. Higher interest rates
  B. Lower interest rates
  C. Steepening yield curve
  D. Parallel shift downwards in the yield curve
  A. Higher interest rates

• Question 153:

  Click on the Detail Button to view the Formula Sheet. How is an outright forward FX transaction quoted?

  A. Forward points
  B. Full forward exchange rate
  C. Depends on whether it is interbank or to a customer
  D. Depends on the currency pair and sometimes the term
  B. Full forward exchange rate

• Question 154:

  Click on the Detail Button to view the Formula Sheet. Market participants should, where activity justifies it, aim to reduce settlement and related credit risk on currency transactions by:

  A. Establishing realistic daylight limits for counterparties.
  B. Monitoring all payments to counterparties who are known to be experiencing difficulties.
  C. Establishing legally binding bilateral netting agreements with counterparties or participating in a multilateral netting system.
  D. Seeking pre-payment.
  C. Establishing legally binding bilateral netting agreements with counterparties or participating in a multilateral netting system.

• Question 155:

  Click on the Detail Button to view the Formula Sheet. If spot AUD/USD is quoted to you as 0.7406-09. How many AUD would you receive in exchange for USD 5,000,000 if you dealt on the price?

  A. 3,704,500
  B. 6,748,549
  C. 3,703,000
  D. 6,751,283
  B. 6,748,549

• Question 156:

  Click on the Detail Button to view the Formula Sheet. Cable is quoted at 1.6075-80 and you say "5 yours!" to the broker. What have you done?

  A. Sold USD 5 million at 1.6075
  B. Sold GBP 5 million at 1.6075
  C. Bought GBP 5 million at 1.6080
  D. Bought USD 5 million at 1.6080
  B. Sold GBP 5 million at 1.6075

• Question 157:

  Click on the Detail Button to view the Formula Sheet. Bank B's price is shown by a broker to Bank A and is dealt by Bank A. If Bank A wants to increase the amount of the transaction, what is good market practice according to the Model Code:

  A. Bank A can call Bank B directly.
  B. Bank A should wait 10 minutes before calling Bank B
  C. Bank A cannot increase the amount.
  D. Bank A should go back to the broker .
  D. Bank A should go back to the broker .

• Question 158:

  Click on the Detail Button to view the Formula Sheet. In spite of having agreed to a deal, dealers are not bound to the deal if it is subject to documentation. The Model Code:

  A. Does not regard this as a good practice.
  B. Urge dealers to be bear this in mind, as this is common practice for capital market deals.
  C. Does not comment on this matter.
  D. Recommends that national ACI Associations deal with this according to their local customs.
  A. Does not regard this as a good practice.

• Question 159:

  Click on the Detail Button to view the Formula Sheet. A person who appears to be a technician asks for your help in accessing treasury systems as he has forgotten his list of access codes. The Model Code recommends:

  A. You should provide all reasonable assistance.
  B. You should report the request immediately to senior management.
  C. Do not get involved; you may be at risk.
  D. There is no recommendation in the Model Code.
  B. You should report the request immediately to senior management.

• Question 160:

  Click on the Detail Button to view the Formula Sheet. Convert 8.25% quoted on a semi-annually compounded money market basis for USD to the equivalent annually-compounded bond basis.

  A. 8.30%
  B. 8.52%
  C. 8.54%
  D. 8.69%
  C. 8.54%